Reward credit cards

However, a store card can be quite limiting, traditionally you could only use them with one particular shop or retail group, though now this is less common with most credit cards issued by retailers working as a normal credit card you can use anywhere.

A store card can offer a number of benefits for consumers, including:

A discount off the price of your first store purchase

Special events such as store card holder only evenings

Store card points per purchase which can convert to in-store vouchers give you discounts on further purchases

Should I get a store card?

Store card interest rates were higher than standard credit cards. When considering a store card you should take into account the Annual Percentage Rate (APR) and compare it with other forms of credit before you sign any agreement.

Shop assistants are often paid commission to sign customers up to their retailer’s store card, so don’t be pressured into signing up before you’ve looked through all the terms and conditions.

While your store card statement will specify a minimum payment, you should pay off the balance in full each month – if you only pay the minimum amount, the store card debt will increase and could take a long time to pay off.

If you would like to know more about the pros and cons of store cards, read our guide.

Store card alternatives

One option could be opting for a new credit card with a 0% balance transfer deal and transferring any store card debt across to the new card.

Furthermore, if you’re after a credit card with some of the perks of a store card but a better APR, try a reward credit card – every time you spend on a reward card you get something back in the form of points, which you can exchanged for discounts, gift vouchers or even flights.

If you have a store card and have difficulty paying off your debts, get in touch with the issuer to make sure they know your situation, while organisations such as Citizens Advice and StepChange can help you tackle your debts.

uSwitch Limited is authorised and regulated by the Financial Conduct Authority (FCA) under firm reference number 312850. You can check this on the Financial Services Register by visiting the FCA website.